Streaming to generate $70bn in 2013

Streaming video and music distributed across the Internet, an IPTV network, or a mobile handset will generate $70 billion in network-derived and content-derived revenue into the US markets over the next six years, according to a study from The Insight Research Corporation.

Insight’s market analysis study, “Streaming Media, IPTV, and Broadband Transport: Telecommunications Carriers and Entertainment Services 2008-2013,” describes the technology and market forces underpinning the network-derived revenues generated from distributing streamed content across the public Internet, content distribution networks, cellular networks, or telco IP networks. The study also estimates the revenue from the various types of content-derived revenues, along with associated advertising revenue. The streaming market is expected to grow at a compound annual rate of nearly 29 per cent over the next six years, driven by on-demand audio, on-demand video, as well as the accompanying advertising revenue.

“The outlook for streaming media has never been brighter. Questions surrounding consumers’ willingness to pay for content have been dispelled by satellite radio and iTunes,” says Robert Rosenberg, Insight Research president. “The forecasts that we present are conservative and in line with current performance. If, however, per-stream costs drop faster than anticipated, we have quicker acceptance of IPTV, or improvements in 3G delivery take place faster than expected, it could blow the doors off of our forecasts, propelling this industry into explosive growth.”